CONSUMERS AND THE

DIFFUSION OF
INNOVATIONS

WHAT IS SHOWN OR STATED IN THIS AD THAT IS

DESIGNED TO ATTRACT CONSUMERS TO THIS NEW
PRODUCT?

NEW FLAVOR

Diffusion
Process

The process by which the

acceptance of an
innovation is spread by
communication to
members of a social
system over a period of
time.

ELEMENTS OF THE DIFFUSION PROCESS

The Innovation
The Channels of Communication

The Social System

Time

THE INNOVATION
Firm-oriented

definitions

Product is new to the company

Product-oriented

definitions

Continuous least disruptive influence on

established behavior. Involves the introduction
of a modified product rather than an totally new
product.
Dynamically continuous Somewhat more
disruptive than a continuous innovation but does
not alter established behavior.
Discontinuous Requires consumers to adopt
new behavior.

WHAT KIND OF INNOVATION IS SHOWN

HERE, AND WHY?

CONTINUOUS INNOVATION THE

PRODUCT IS MODIFIED

THE INNOVATION
Market-oriented

definitions

Based on consumer exposure

Consumer-oriented

definitions

Consumer judges it as new

THE INNOVATION
PRODUCT CHARACTERISTICS
Relative
Advantage

Degree to which consumers consider it superior

to existing substitutes

Compatibility

Degree to which consumers feel it is consistent

with their present needs, values, and practices

Complexity

The degree to which it is difficult to understand

or use

Trialability

The degree to which it can be tried on a limited

basis

Observability

The degree to which its benefits can be observed,

imagined, or described

CHANNELS OF COMMUNICATION

Channels of communication

Marketer to consumer
Consumer to consumer
Influential impersonal sources

THE SOCIAL SYSTEM

Modern

social systems accept more

innovation due to their:

Positive attitude toward change

Advanced technology and skilled labor
force
Respect for education and science
Emphasis on rational and ordered social
relationships
An outreach perspective where members
interact with outsiders
A system where members can see
themselves in different roles

TIME
Purchase Time
Adopter Categories
Rate of Adoption

ADOPTER CATEGORIES

Category 1
Innovators

First to
buy the
mini
netbook

Category 2
Early
adopters

Category 3
Early
Majority

Category 4
Late
Majority

Will
buy
mini
netbook
shortly
after its
introdu
ction

Members
of the 1st
of the
mass
market
who
would
purchase
the mini
netbook

Second
half of
the mass
market
who
would
purchase
the
mature
mini
netbook

Category 5
Laggards

Very last
to
purchase
the mini
netbook,
if at all

DIFFUSION CURVES FOR ADOPTER

CATEGORIES - FIGURE 14.5

DISCUSSION QUESTION
Which adopter category are you?
Does it differ with different product categories?
How about your parents, what category are
they?
Is age a factor in innovation behavior?

RATE OF ADOPTION

How long does it take a new product to be adopted

by the members of a social system?

Adoption
Process

The stages through

which an individual
consumer passes in
arriving at a decision to
try (or not to try), to
continue using (or
discontinue using) a new
product.

STAGES IN ADOPTION PROCESS

NAME OF
STAGE

WHAT HAPPENS DURING THIS

STAGE

EXAMPLE

Awareness

Consumer is first exposed to

the product innovation.

Raj sees an ad for a 23-inch thin LCD

HDTV in a magazine he is reading.

Interest

Consumer is interested in the

product and searches for
additional information.

Raj reads about the HDTV set on the

manufacturers Web site and then goes
to an electronics store near his
apartment and has a sales person show
him the unit.

Evaluation

Consumer decides whether or

not to believe that this product
or service will satisfy the need
a kind of mental trial.

After talking to a knowledgeable

friend, Raj decides that his TV will fit
nicely on top of the chest in his
bedroom. He also calls his cable
company and finds out that he can
exchange his standard cable box at
no cost for an HDTV cable box.

STAGES IN ADOPTION PROCESS

NAME OF
STAGE

WHAT HAPPENS
DURING THIS STAGE

EXAMPLE

Trial

Consumer uses the product

on a limited basis

Since the HDTV set cannot be

tried like a small tube of
toothpaste, Raj buys the TV at this
local electronics store on his way
home from work. The store offers a
14-day full refund policy.

Adoption
(Rejection)

If trial is favorable,
consumer decides to use the
product on a full, rather
than a limited basis if
unfavorable, the consumer
decides to reject it.

Raj loves his new HDTV set and

expects many year of service from
it.

THE CONSUMER INNOVATOR

The earliest purchasers of a new product
Tend to have higher level of:

Education
Social interaction
Opinion leadership
Venturesomeness
Social Status

THE CONSUMER INNOVATOR

Interest in product category
Opinion leader

DISCUSSION QUESTIONS
Who are the most influential opinion leaders for
college-aged people?
Why are they influential?

THE CONSUMER INNOVATOR

Personality traits

Perceived risk and venturesomeness

Purchase and consumption characteristics
Media habits

THE CONSUMER INNOVATOR

Social characteristics
Demographic
characteristics

COMPARATIVE PROFILES OF THE CONSUMER

INNOVATOR AND NON-INNOVATOR Characteristic

Innovator

Noninnovator

Social Characteristics
Social integration

More

Less

Social striving

More

Less

Group memberships

More

Less

Age

Younger

Older

Income

Higher

Lower

Education

More

Less

Occupational status

Higher

Lower

Demographic Characteristics